siliconindia | | MARCH 20238ADANI & HINDENBURG'S LOSS OF SHARES -A REPORT OF BUSINESS ESTIMATIONAfter taking out Rs.20,000 crore equity fundraising plant last week because of a stock rout set off by Hindenburg Research's fraud allegations against conglomerate, the Adani group plans to trim its capital spending plans, as reported to a renowned media house for the development of the financial sector. While providing more collateral in form of stock pledges for lending, the group might be moderating its capex plans in some of the businesses as stated. In one of the publications by the renowned media house, two of the people quoted saying, "At Adani, there is a rethink on the capex. The group may moderate its capex plans in some of the businesses. So, instead of targeted growth over 12 months, they may look at a time frame of 16-18 months for that quantum of growth in certain businesses".The conglomerate will be returning to the usual growing pace as one normalcy returns, as reported the group might look at the 16-18 months for the growth in certain businesses instead of a 12-month target. The company will be using the alternative funding channels from internal accruals, promoter equity funding and private placements for funding projects. The Adani Group generates Rs.57,000 ­ Rs.60,000 crore of Ebitda year wise and out the same, around half of the amount is available to the group as cash, which the group plans to use for capex, working capital requisites and meeting immediate payments, which are worth around $300 million over the next six months, as two people added. On pledges, the move for providing more collateral is after stocks of group companies faced a rout in the market last week after the Hindenburg report levelled allegations of stock manipulations and accounting fraud.The group will be planning for complete reduction of the share pledges, the newspaper quoted an executive close to the development as said. The executive said, "The company will pay down all share-backed loans; that will happen very shortly. Second, they will build up more cash buffers in these businesses, they are already very strong, and this will be demonstrated next week when the results are out". The market value of the billionaire Gautam Adani's companies has slumped by almost half since the Hindenburg Research released on a report on January 24th with acquisitions of the conglomerate of stock manipulation and accounting fraud. The group has denied the allegations of Hindenburg's corporate wrongdoing and threatened legal actions.Business Plans Again to Evolve As per the shares in Adani companies recovered after the sharp fall of the earlier in the day, the seven listed firms have still lost half of the market value or more than $100 billion in combination. Since the US-based short-seller last week questioned the group over the debt levels, Reuters reported. The listed Adani firms are now having a combination market value of $108 billion, versus $218 billion before the Hindenburg's report. The research firm, IN FOCUS
< Page 7 | Page 9 >